APR Constructions Limited - Saffron Capital

(` in Lakhs)
Particulars Year Ended March 31
8 months 2010 2009 2008 2007 2006
ended 30
November,
2010
Net Cash From/ (used in) Operating
activities 384.79 1,011.21 (2,552.08) 634.41 (1,043.71) 793.27
Net Cash From/ (used in) Investing
activities 43.16 109.63 (2,360.68) (520.35) (229.84) (1,354.35)
Net Cash From/ (used in) Financing
activities (980.70) (1,977.04) 4605.24 1,461.23 672.55 1,721.26
Net increase in cash and cash
equivalents (552.75) (856.19) (307.52) 1,575.29 (601.00) 1,160.18
Any negative cash flow in the future could affect our operations and financial conditions. For further details, please
refer to the section titled “Financial Statements” beginning on page 148 of this Draft Red Herring Prospectus.
31. Our Company has bid for Build, Operate and Transfer (“BOT”) projects, there are several risks associated
with such projects which may have adverse impact on our revenues.
As part of our strategy, we had bid and also plan to selectively bid for BOT projects in future. In addition, we expect
that the overall proportion of projects that are offered on a BOT basis will increase over time due to the government‟s
increasing reliance on private participation in infrastructure investment. BOT projects offer the potential benefit of
higher operating margins, as BOT projects can generally give us greater control over project costs. In addition, they
offer the potential benefit of greater-than-anticipated revenues from the users of the constructed facility during the
concession period. However, the risks associated with undertaking BOT projects can be substantial, including the risk
of incorrect forecasts at the bid stage concerning revenues to be derived from the use of the constructed facility and
the risk of extended exposure to fluctuating economic conditions. Reduced profitability or losses from BOT projects
that do not perform as forecast could have a material adverse effect on our results of operations. Additionally, growth
in BOT infrastructure projects may require increasing private sector participation. Investment by the private sector in
such projects is dependent on the potential returns from such projects and is therefore linked to government policies
relating to public-private participation and the sharing of risks and returns from such projects. Any changes in
government policies that may lead to a reduction in capital investment in the infrastructure sector by the private sector
could have a material adverse impact on our business and our results of operations. Revenues in BOT projects accrue
to the contractor at a later stage in form of user fees and the toll collected. The collection of the toll amount being
uncertain in nature, it may be insufficient to generate enough revenue which shall have a material impact on our
business and our results of operations.
32. Our Company was in violation of Section 383A of the Companies Act, 1956 for the period from March 31,
2005 till February 14, 2007 and December 01, 2009 till April 11, 2010, which may attract penalties under the
Companies Act, 1956.
The Company was in violation of Section 383A of the Companies Act, 1956 for a period from March 31, 2005 till
February 14, 2007 as well as December 01, 2009 till April 11, 2010. This non compliance may attract a liability as per
the provisions of the Companies Act, 1956. No show cause notice in respect of the above has been received by the
Company from the office of Registrar of the Companies till date. Our Company is in process of making an application
for compounding of the violation.
33. One of our Joint Venures namely, APRCL – CRSSG (JV) has incurred loss for the financial year ended 2010
and 2009.
One of our Joint Ventures namely APRCL – CRSSG (JV) has incurred loss for the period financial year ended 2010
and 2009. There have been no operations in this company since financial year 2009.
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